landlord's often believe that fixed term leases protect them, and provides them security of the tenancy; however, little do Landlords think about the consequence of that fixed term lease. Consequences when it comes to selling the unit, moving into the unit, or evicting a late paying tenant.
With a fixed term lease, you cannot pursue ano-fault eviction for enforcement until the end of the fixed term lease. This means that a Landlord cannot obtain an N12, N13 or N8 eviction until the fixed term lease expires. Sign a 5 year lease and want to move into the unit because circumstances changed, you cannot do that until the lease term expires. Many Landlord's don't think about life changing circumstances when signing a lease, or believe that they can end the lease in accordance with the notice by giving 60 days. That is not true, a fixed term lease means the Landlord cannot evict on a no-fault eviction application until the term expires.
After the fixed term lease though, I as the landlord can give 60 days notice and not renew! No, NO, NO! it does not work that way. After a fixed term lease, the tenants remain in the unit on a month-to-month basis until at which time the board evicts the tenants on the grounds of the Residential Tenancies Act 2006, or the tenant agrees to leave. Just because your lease ends- and the tenant won't sign a new lease does not mean the tenant must leave.
Security of Tenure
Termination only in accordance with Act
37 (1) A tenancy may be terminated only in accordance with this Act. 2006, c. 17, s. 37 (1).
There is just not many advantages for a Landlord to sign a fixed term lease but they do so all of the time thinking it is advantageous to them, that is just not the case.
Next time you're looking at re-renting a space consider using a short duration fixed term lease, or just sign a month to month lease. There are no major advantages to you, as the landlord, signing a fixed term lease, but there are numerous advantages to the tenant.
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